United American Corporation announces a new agreement with PEER 1 Network, its first téliPhone™ city Beta site and additional PSTN Capacity

Montreal, Canada, October 26, 2004.  United American Corporation (NASD otcbb: UAMA) announces that TéliPhone Inc., its wholly owned subsidiary, has entered into a new agreement with PEER 1 Network (TSX-V: PIX) for a co-location facility covering the United States. PEER 1 is currently the company's network collocation facility partner for Canada. It is finalizing TéliPhone's network PEER 1's New York deployment operation for the United States this month. PEER 1 offers the company State of the Art facilities with guaranteed 100% uninterrupted transit access to the Internet.

TéliPhone Beta Test Site SAINT-HYACINTHE

United American Corporation has selected Saint Hyacinthe as the first téliPhone™ city in Quebec, Canada. Currently, calling Montreal from this suburb 50 miles away is subject to long distance charges. As a téliPhone™ city , long distance calls will be now be free when using the Company's téliPhone™. This will be in addition to the standard benefits of téliPhone™ services, which include free telephone calls between subscribers wherever they are located in the world, a universal telephone number with Call Forward FollowMe™, multiple numbers, more secured communications and Internet integrated voicemail.

Additional PSTN Capacity with SPRINT CANADA

To meet future growth needs, the company has added more T1 connections with Sprint Canada , which provides additional PSTN capacity. Sprint Canada Inc., a wholly-owned subsidiary of Call-Net Enterprises Inc. (TSE: FON), is one of Canada 's leading national communications solutions companies. Sprint Canada operates in 17 locations across the country.

About PEER 1 Network

PEER 1 provides world-class IP network and server co-location facilities for close to 800 businesses of all sizes in the government, financial, health, education, retail and technology sectors. PEER 1's world-class IP network is one of North America 's leading secure server co-location facilities. It is backed by a 100% uptime guarantee. For more information, visit PEER 1 NETWORK.

About TéliPhone, Inc.

Téliphone Inc. is a wholly owned subsidiary of UAC. Since 2001, the company has pioneered Voice over Internet Protocol (VoIP) in Canada . The company was the first Canadian VoIP service provider to offer a nation-wide telecommunication local call coverage service. The company has developed a powerful back office system that provides an integrated web-based personal portal to their subscribers as well as administrative support to the company, and constitutes the core technology of today's mobile téliPhone™ services. TéliPhone™ operates its own Main CO (Central Office) in Montreal, where all worldwide téliPhone™ devices are controlled, thus giving the company the advantage of centralized operations and cost reductions.

The CO is state-of-the-art, with full equipment redundancy including battery backups, electric generators, a redundant air conditioning system, and fibre optic Internet backbone connections. Also, téliPhone™ relies on leading edge equipment, which is based on HP/Compaq servers, running on Microsoft Windows and Linux servers operating systems, and Cisco System and Quantum Technology switches, gateway and network equipment. For more information, visit the company website at www.teliphone.us.

About United American Corporation

United American Corporation is a holding and management company of next generation Voice over Internet Protocol (VoIP) based telecommunication Company. The organization currently has five subsidiaries. Each subsidiary operates in a specific niche market in a fast growing global worldwide IP-based telephony network. The company has created a network which provides services from local IP-based telecommunication to international telecommunication carriers. téliPhone™, Inc operates sophisticated extended local communication VoIP central office, while United American Telecom, Inc operates CaribbeanONE™, a state-of-the-art International telecommunication route & gateway. For more information, visit the company website at www.unitedamericancorp.com.

This news release contains forward-looking statements that are subject to various risks and uncertainties. The Company's actual results could differ materially from those anticipated in such forward-looking statements as a result of numerous factors that may be beyond the Company's control. Forward-looking statements are based on the expectations and opinions of the Company's management on the date the statements are made, and the Company assumes no obligation to update forward-looking statements should circumstances in management's expectations or opinions change.